Problems customer disconnect and management disconnect Customer Disconnect 1.

. GAM reported to country head and BU head in the previous structure. Resulted in Interest conflict. -Country heads interests Not truly global but ABB Turbo Switzerland Caterpillars use Kiel Germany and USA -Business Heads Pushing for BU product (Robotics) rather than what the customer wants. Reason for not providing better delivery support - Since majority of sales from caterpillar go towards turbo chargers BU the previous GAM from Robotics might not have been that interested in the account. Also, limited exposure to other depts. in caterpillar as well as ABB Result: Reorganization of the roles and structure Management disconnect 2. Change in the reporting structure of GAM result in power conflicts between GAM and Senior management in individual business Units Recom: After reorganisation the duties of each role should have been clearly stated. What Now? Caterpillar though doesnt contribute to a large chunk in overall revenues ($67 Million out of $20.7 Billion) is an important client because 1) It is a leading global player in the market which implies growth, volumes right now among Top 3 customers for turbo systems 2) There is a huge opportunity for cross-selling of other products of ABB if the relationship is set right

3) Steering committee must constitute among others from Caterpillar - Paul from ABB - Dan, Turbo systems VP